Since we listed General Electric (GE) on Monday there has been one fakeout, but more basing in the bull flag. The longer a stock bases, the more energy it builds for the ultimate measured move. Also, however, you have to be mindful that the more times a stock tries to break higher out of a flag and fails, the more likely it is to eventually break down. We are not at that point yet with GE, but make sure you have a firm stop below Tuesday’s low. The stock should be get to 19.50, but in this environment we are not going to get greedy with price targets, especially with a slower mover like GE. We will look to exit this trade at the measured move seen on the second chart below.
